On 31 December 2020, we published a statement on our use of the Temporary Transitional Power (TTP) to modify the application of the derivatives trading obligation (DTO).
In that statement we said that we would keep our use of the TTP under review and consider by 31 March 2021 whether market or regulatory developments warrant a review of our approach.
We have not observed market or regulatory developments in the first quarter of 2021 that justify a change in our approach. Therefore, we will continue to use the TTP to modify the application of the DTO as previously set out.
As highlighted previously, our approach is driven by our objectives, and aims to support the ability of firms based in the UK to continue to do a range of international business and serve their global clients, while upholding our G20 commitment in respect of the trading of OTC derivatives.
We will continue to monitor market and regulatory developments and review our approach if necessary. If we do see a case for a change, we will provide sufficient notice to market participants so that any changes can be implemented smoothly.
As specified in our December statement, we expect firms and other regulated persons to be able to demonstrate compliance with the UK DTO.